SHFE zinc fell amid the bearish sentiment in the overseas market [SMM Zinc Morning Comment]

Published: Feb 8, 2024 09:54

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LME zinc opened at $2435/mt last evening, and hit a high of $2441/mt before falling back to $2396.5/mt, and closed at $2409.5/mt, a decrease of $22/mt or 0.90%. The trading volume increased to 12719 lots, and open interest increased 1317 lots to 228,000 lots. LME zinc inventory grew by 9675 mt or 4.92% to 206450 mt. Federal Reserve officials continued to maintain hawkish statements, macro bearish sentiment continued, and LME inventories increased significantly. Support for zinc prices weakened.

The most active SHFE 2403 zinc contract opened at 20505 yuan/mt and fell 110 yuan/mt or 0.54% to close at 20420 yuan/mt, with the high-end of 20520 yuan/mt and the low-end of 20400 yuan/mt. Trading volumes decreased to 24007 lots and open interest fell 446 lots to 74955 lots. Downstream and traders are basically on holiday this week. Downstream demand has dropped to the lowest level this year. Spot trading has continued to be light. Poor demand has weakened support for zinc prices.

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